Explain what is meant by supply chain risk management and how Essay

Explain what is meant by supply chain risk management and how organizations mitigate supply chain risks. Use two examples of companies to illustrate your answer - Essay Example o another point with the objective of creating net value, creating a economical infrastructure, leveraging worldwide logistics, to make tally supply with demand and measuring performance globally (Chopra and Meindl, 2001). A good supply chain management aids the organizations to fulfil the demand of market at right time. It helps the organizations, how they should procure the raw materials for manufacturing and distribute the finished goods into the market for sales with minimizing the cost and the time of delivery (Hugos, 2003). A well planning supply chain management aids the organization to increase profit by minimizing the cost of transport of goods from one point to another point. Even though, a strong management in supply chain helps the organization to maintain a good relationship with both suppliers and consumers. However, a risk can be encountered in supply chain, and this risk can be avoided with the help of supply chain risk management (Burt, Starling and Dobler, 2003). It is implementation of strategies to control both daily and incomparable risks along the supply chain footed on repeating risk evaluation with the purpose of reducing vulnerability and guarantee stability (Brindley, 2004). Supply chain risk management helps to decrease the supply chain liability with the help of Holistic approach, which includes all stakeholders of supply chain, and discovers and analyses the risk of breakdown point inside the supply chain. The risks related to supply chain could be finance, logistics, inventory and many more that can be related with the risk management of supply chain. The main objective of SCRM is to identify the problem and to provide logical solution to overcome the risk in supply chain of any organization (Handfield and McCormack, 2008). A supply chain may not be as dynamic or perplexing as capital markets, yet regarding the matter of overseeing supply chain risk the test is, ostensibly, could be as imposing as overseeing risk for instruments,